Post on 04-Apr-2018
transcript
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Chapter 3:- Ethics First . . .
Then Customer Relationships
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FLOW OF PRESENTATION
(MAIN TOPICS) Social, Ethical and Legal influences
Managements Social Responsibility
What influences Ethical Behavior?
Are there any Ethical Guidelines?Managements Ethical Responsibilities
Ethics in dealing with sales people
Salespeople Ethics in dealing with theirEmployers
International side of ethics
Managing Sales Ethics
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SOCIAL, ETHICAL AND LEGAL
INFLUENCES
An organizations enviourment is a majorinfluence on how the firm sells its products.
Social responsibility can be difficult concept
to grasp because it is a subjectivephenomenon.
Reason for the difficulty in understanding
Social responsibility is that managers mustconfront the question responsibility towhom?
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SOCIAL, ETHICAL AND LEGAL
INFLUENCES
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MANAGEMENTS SOCIAL
RESPONSIBILITY
Organizations Main Responsibility:-
Economic Responsibility
Legal Responsibility
Ethical Responsibility
Discretionary Responsibility
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Major stakeholders in the
organizations performance
Saleperson
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ECONOMIC RESPONSIBILITY:- BE
PROFITABLE
The business institution is above all the basic
economic unit of society.
Its responsibility is to produce the goods and
services that society wants and to maximize
profits for its owner and shareholders.
Profit provides the capital to stay in business,
to expand, and to compensate for the risk of
conducting business.
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LEGAL RESPONSIBILITY :- OBEY
THE LAW All modern societies lay down ground rules, laws,
and regulations that organizations are expectedto follow.
It defines what society deems as important withrespect to appropriate corporate behavior.
Organizations are expected to fulfill theireconomic goals within the legal framework.
Legal requirements are imposed by local towncouncils, state legislators, and federal regulatoryagencies.
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ETHICAL RESPONSIBILITIES :- BE
ETHICAL. DO WHAT IS RIGHT
It includes behaviors that are not necessarilycodified into law and may not serve thecorporations direct economic interests.
To be ethical organizations decision makersshould act with equity, fairness, andimpartiality, respect the right of individual.
Unethical behavior occurs when decisionsenable an individual or company to gain at theexpense of society.
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DISCRETIONARY RESPONSIBILITIES
It is purely voluntary and guided by acompanys desire to make social contributionsnot mandated by economies , law or ethics.
It include generous philanthropiccontributions that offer no monetary return tothe company and are not expected.
It is the highest criterion of social
responsibility because it goes beyond societalexpectations to contribute to the communityswelfare.
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HOW TO DEMONSTRATE SOCIETAL
RESPONSIBILITY Taking corrective action before it is required.
Working with affected constituents to resolve mutualproblems.
Working to establish industry wide standards and self
regulation. Publically admitting mistakes.
Getting involved in appropriate social programs.
Helping correct environmental problems.
Monitoring the changing social programs.
Establishing and enforcing a corporate code of conduct.
Taking needed public stand on social issue.
Striving to make profits on an ongoing process.
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What Is Ethical Behavior?
Being honest and truthful.
Maintaining confidence and trust.
Following the rules.
Conducting yourself in the proper manner.
Treating others fairly.
Demonstrating loyalty to company and
associates. Carrying your share of the work and responsibility
with 100 percent effort.
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WHAT INFLUENCES ETHICAL BEHAVIOR?
Individual Role
Organizational Role
Individual Role:-
Level 1) Preconvention moral Development
Level 2) conventional moral DevelopmentLevel 3) Principled moral Development
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PRACTISING ETHICS- CONTRADICTION FOR
SALESPEOPLE
Sales managers have both social and ethical responsibilities
towards sales personnel. Yet, occasionally a company may
place managers and/or salespeople in positions that force
them to choose among compromising their ethics, not doing
what is required, or leaving the organization.
The choice depends on the magnitude of the situation. At
times, situations arise wherein it is difficult to say whether a
sales practice is ethical or unethical.
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Managements Decisions that affects
Salespersons.
Level of Sales Pressure
Decisions Affecting Territory
To Tell the Truth?
The iII Salesperson
Employee Rights
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SALESPEOPLES ETHICS IN DEALING WITH
THEIR EMPLOYERS
Misusing Company Assets
Moonlighting
Cheating
Affecting Other Salespeople
Technology Theft
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Numerous ethical situations may arise in
dealing with customers, and sales
organizations may create specific business
conduct guidelines.
Some common problems sales personnel face
include bribes, misrepresentation, price
discrimination, tie-in sales, exclusivedealership, and sales restrictions.
Salesperson-Ethics in dealing with
Customers
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Salesperson-Ethics in dealing with
Customers CONTD Bribes
Unequal gifts
Misrepresentation
Exaggeration on the capabilities of the product
Price Discrimination
Quantity discounts to different buyers.
Tie-in Sales
Pushing non moving goods with moving goods.
Eg: Amul Butter
Exclusive Dealership
Reciprocity
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INTERNATIONAL SIDE OF ETHICS
Guidelines are not same as India
Laws have to follow outside the borders of
country
High ethical standard in US
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7 STEPS FOR MANAGING SALES
ETHICS
1. Top Management taking the lead
Employee always follow Sales, territory Manager
Speeches, Interviews & action need to
communicate ethical values of the organization
2. Carefully Selecting Leaders
Critical process
Highest level of integrity, Skills & Knowledge
require
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7 STEPS FOR MANAGING SALES
ETHICS
3. Establishing & following a Code of Ethics
It is formal statement of company
Eg TATA code of conduct
Principle-based statements values, language,responsibilities, quality of product & treatment ofemployees
egJ&J The Credo Policy-based statements marketing practice,
proprietary information, political gifts
egBoeing Code of Business Ethics
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Boeing Company Policy "Ethical BusinessConduct-sales person pov
Boeing will conduct its business fairly, impartially, in an ethicaland proper manner, in accordance with the company's valuesand Code of Conduct, and in full compliance with all laws andregulations. In the course of conducting company business,integrity must underlie all company relationships, including
those with customers, suppliers, and communities and amongemployees. The highest standards of ethical business conductand compliance are required of Boeing employees inperformance of their company responsibilities.Employeesmust not engage in conduct or activity that may raisequestions as to the company's honesty, impartiality, or
reputation or otherwise cause embarrassment to thecompany. Conduct that is prohibited under Boeing policy ordoes not comply with laws and regulations may not beaccomplished on an employee's behalf by anyone outside thecompany.
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7 STEPS FOR MANAGING SALES
ETHICS
4. Create Ethical Structure Appoint Ethical committee
Ethics Ombudsman official responsibilities givento group who hears & investigates ethics
complaints & inform top management Eg IBM, Xerox & P&G.
5. Encouraging Whistle-Blowing
Encourage salesperson to report unethicalactivity to group.
By toll free no, Silent witness programme
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7 STEPS FOR MANAGING SALES
ETHICS
6. Create ethical Sales Climate ( sales managementresponsibility)
Develop & support Code of Ethics
Ethical awareness during sales meeting, trainingsession
7. Establish Control System ( sales managementresponsibility)
Methods to determine whether salespersongiving bribes, false report
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Nikhil Ambekar (PG-11-003)
Ninad Kalgutkar (PG-11-017)
Snehal Kanase (PG-11-018)